Shit! ER on Insurance... exit op?
Hi every one!
I have a big question. I've been hired to work with insurance companies as ER analyst... I'm really wondering about exit opportunities after that. Can I go on other industries or will I be stuck with insurance???
Thxx
A few years ago, I knew a ER analyst with a BB who exited to CFO for one of the insurers he covered.
Finance Department of Insurers seems a good bet. Insurers are much more relaxed culture than banks.
Could jump to reinsurance underwriting - very good pay if you can handle the boredom.
Other options:
Asset management Insurance Company in-house investment teams
Ok, thank you for your comment. But how about other industry than assurance? Is it possible/not too difficult to go work as ER on another industry?
Should give you a modicum of exposure to evaluating other financial institutions.
yup you can join the reinsurance industry.. not too sure about the pay wise but I heard its highest among the insurance industry.. (do you guys know the pay scale?)
you can always go to S&P and similar companies..
anyways if you are really doing ER as compared to like insurance underwriting, I'm pretty sure your skills can be transferred to banks.
Reinsurance..., I would also be interested on the pay scale (like CFO, investor relation, and so on).
But yeah, I'm working on insurance and reinsurance companies. Accurate underwriting is essential for them but we don't learn how to do it (I think it's the role of actuary to do that).
The thing is that I feel like I will never be an expert on that field (I'm just not interested on insurance activity and matters). So now I just would like to sell this experience/knowledge in an investment bank/boutique or PE. Difficult task I'm afraid...
Some possible career paths in Insurance/Reinsurance:
Corporate Finance Department- these are legit global financial firms, great place to be
Investment Office- insurers/reinsurers have buckets of premium cash to invest. Warren Buffett built his empire with insurance/reinsurance float. His cost of capital is minimal b/c of it. These are great places to be, especially on the reinsurance side where they invest like hedge funds.
Insurance/Reinsurance Investment Banking- try industry firms like AonBenfield and Guy Carpenter, but also KBW, Stephens, etc. Check league tables for the insurance industry on SNL.
Reinsurance Brokering- AonBenfield, Guy Carpenter, Holborn, Towers Perrin, Willis.
Reinsurance Underwriting- more stable than brokering, but less instant upside.
Ok, thank you for your information. You seem to know a lot about insurance. Are you working on this sector?
Quick correction: Guy Carpenter is a reinsurance broker. Heard the lifestyle pre-crisis was good there (excellent hours apparently) but that might've changed.
Great folks at GC. Have a bunch of friends there. They have a nice mix of Ivy/NESCAC kids plus a few bright big state school (PSU, etc) kids. The more senior folks are great too. Reinsurance hours are never bad. Some random travel but other than that it is very easy compared to IB.
Yup reinsurance hours arent as mad as IBs but you do have your long hours during renewals period (december, june).. money is good, not too sure if its as good as IB though
overall, IMO reinsurance is a good track but its not as dynamic as the banking world.. so things can get dull and boring
Why have you been assigned to insurance? It is a very specific industry with very little transferable skills (even less than covering banks which is pretty specific). Trust me if you don't like insurance you won't be able to cover the sector. In larger fig groups on the investment banking side a lot of guys try to avoid insurance like the plague, you either like it or really hate it.
As to what you can do - well if you want to work in investment banking or PE then yes there may be slots available if there's activity in the sector at that point in time since you'd be a specialist. There's always FIG teams of investment banks that would hire you as it's hard to get people with good insurance knowledge. PE would be limited, though there are some funds I guess.
To be honest you'll probably find it hard to break out of insurance without changing career completely or doing an MBA. Insurance is just too much of a niche..
Maybe the more I stay, the less I can change...
Yup I have to agree with Oconnor. Insurance is kinda of a niche, it may be good or bad, but one thing for sure is, its not as exciting and dynamic.. I know of people who was in the insurance industry and are now woking in BBs as ER.. that is of course one of your options.. and from seniors that I've talked to, most of them will advise me to avoid such areas or do MBA if you are in one and will want to exit out of insurance industry..
good luck my friend..
Insurance Buy-Side Research (Originally Posted: 04/13/2011)
Would working for an insurance company investing their assets be a good internship to have to break into IM?
How is an internship doing research for a large insurance company compare to one at a fund manager?
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